Category: ETF

Starting to buy Exchange Traded Funds (ETFs) sounds scary but its not. Anyone interested in this lucrative market who knows how to buy stocks can just as easily purchases ETFs. First rule is to make buying ETFs as inexpensive as possible by using firms that give you access to a wide range of ETFs for,…

ETFs generally provide easy diversification with low expense ratios. They also have the tax efficiency of index funds , while still maintaining all the features of regular stock. ETFs can be acquired economically, held and then disposed so some investors invest in ETF shares as a long-term investment, or a way to implement market timing strategies. ETFs Advantages: Generally have lower…

The growing importance of ETFs stems from the fact that they offer investors one of the most efficient, cost-effective and convenient ways to access returns both from emerging markets and an increasingly wide range of other investment opportunities around the world. The Biggest advantage of ETFs is that they are a convenient and cost-efficient alternative…

The ETF industry in the early days had a vast majority of funds tracked well-known equity benchmarks, such as the S&P 500, Russell 1000, and Dow Jones Industrial Average. As the benefits of ETFs have become more widely known and understood, the number of issuers and ETFs has increased significantly, and so has the scope…

ETFs are popular among institutional investors to make rapid and large bets on sectors such as oil, gold, waste-management and semiconductors. They also use ETFs to hedge their bets on stocks, bonds, commodities and other securities. In 2007, managers introduced ETFs for use in retirement accounts such as 401(k) plans, as well as life- cycle…

DIAMONDS Trust (DIA:AMEX) This popular ETF Tracks the Dow Jones Industrial Average, a benchmark of 30 blue chip stocks selected by The Wall Street Journal. The index is highly subjective and rather antiquated in its formula but serves as a good barometer for very large old-line US companies. iShares S & P 500 (IVV:AMEX) Barclays’…

I believe the choice of which type of investment to pursue — if only one is to be chosen — is more a question of passive versus active management style, and it is not mutually exclusive. Certain investors might choose to own both ETFs and mutual funds to round out their portfolios. Simply put, an…

The risk of the underlying asset is quite another matter. Each asset class must be examined separately, and risk profiles of assets may change over time. Stocks are clearly risky, and ones in technology or emerging markets particularly so. Long-term bonds and real estate are also risky in their own way. Short-term investment grade bonds,…

IMF (Index mutual funds) also track baskets of securities. Unlike index funds, which are priced once after the end of each trading session, ETF (Exchange-traded funds) prices changes throughout the day because they’re traded like shares. Like shares, they can also be sold short — a bet that the index value will decline — and…